2008 Executive Incentive Compensation Plan



 Exhibit 10.10 
 2008 FHLBANK OF INDIANAPOLIS INCENTIVE COMPENSATION PLAN 
 Approved by Board of Directors
January 24, 2008, 
 as Amended May 22, 2008 
  

																
	 MISSION GOALS
	  	WEIGHTED
VALUE	 	 	MINIMUM
THRESHOLD	 	 	2008
TARGET	 	 	MAXIMUM	 
	1. PROFITABILITY	  			 				 				 			
	 Potential Dividend over our Cost of Funds (1)
	  	50	%	 	 	50	 B.P.	 	 	100	 B.P.	 	 	200	 B.P.
					
	2. ADVANCES	  			 				 				 			
	 Increase in Average Total Advances (2)

	  	35	%	 	 	4	.5%	 	 	9	.0%	 	 	18	.0%
					
	3. MORTGAGE PURCHASE PROGRAM	  			 				 				 			
	 MPP production (3)
	  	10	%	 	$	238	 M	 	$	325	 M	 	$	500	 M
					
	4. COMMUNITY INVESTMENT	  			 				 				 			
	 CIP Advances Originated (4)
	  	5	%	 	$	25	 M	 	$	50	 M	 	$	100	 M

  

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 2008 FEDERAL HOME LOAN BANK OF INDIANAPOLIS 
 INCENTIVE COMPENSATION PLAN 
 Approved by Board of Directors January 24,
2008, 
 As Amended by the Board May 22, 2008 
 Definitions: 
  

	 	(1)	Potential Dividend is defined as adjusted net income as a percentage of average total capital stock. Adjusted net income is adjusted (i) for the effects of current and prior
period prepayments and debt extinguishments, (ii) to exclude mark to market adjustments and other effects from SFAS 133, (iii) and to exclude the effects from SFAS 150. Assumes no material change in investment authority under FHFB’s
FMP, regulation, policy, or law. 

  

	 	(2)	Average annual advances for all members on December 31, 2008 except LaSalle Bank Midwest NA and Flagstar Bank. Excludes non-members. Includes CIP advances. Advances
number does not take into account SFAS 133 adjustments. 

  

	 	(3)	Mortgage Purchase Program production will be the amount of all MDCs traded in 2008. Assumes no capital requirement for MPP. It also assumes no material change in MPP authority under
FHFB’s FMP, regulation, policy, or law. When calculating achievement between the minimum threshold and the performance maximum, no single member can account for more than 25% of production. 

  

	 	(4)	Newly-originated Community Investment Cash Advances, including CIP, HomeRetain and other qualifying advances, provided in support of targeted projects as defined in 12 CFR Part 952
and the FHLBank Act. 

 Plan Terms: 
 By resolution the Board of Directors may reduce or eliminate a payout that is otherwise earned under this Plan, if the Board finds that a serious, material safety-soundness problem or a serious, material risk management deficiency exists at
the Bank. 
 For performance results less than the stated threshold, there is no payout for that particular goal. For performance results
equal to or greater than the stated threshold, the respective payout will be 25% plus the remaining 75% interpolated between the threshold and the respective maximum for that particular goal. 
 The FHLBank’s Board of Directors may amend this plan at any time during or after the plan year for any reason, including without limitation,
emergency or any unanticipated market conditions outside of management’s control. To be eligible to receive a payment under the plan, the employee must be actively employed on the last work day of the plan year or be on an approved leave of
absence, including FMLA leave. In the event a participant terminates employment during the plan year, he or she will not be eligible to receive incentive payments under the plan, unless the employee terminates because of death, disability, or
scheduled retirement. In these cases or where the board otherwise determines the incentive payment is appropriate, the payment shall be made on a pro-rata monthly basis earned through the date of termination assuming a satisfactory or better job
performance record up to the date of termination. 
  

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 The plan in its entirety is discretionary and may be discontinued by the board of directors at any time.
It is not intended to create any vested rights to employees or their beneficiaries. This plan shall not be considered a contract and nothing in the plan shall be construed as providing participants any assurance of continued employment for any
definite period of time, nor any assurance of current or future earnings. This plan shall not, in any manner, limit the Bank’s right to reduce or terminate compensation and/or employment at its will, with or without cause. 
 For 2008, participation is as follows: 
  

										
	 	  	Short-Term Incentive Plan	 
	 Eligible Participants**
	  	Threshold*	 	 	Target*	 	 	Maximum*	 
	 President-CEO
	  	30.0	%	 	50.0	%	 	70.0	%
	 Senior Vice Presidents
	  	20.0	%	 	30.0	%	 	40.0	%
	 First Vice Presidents
	  	20.0	%	 	25.0	%	 	30.0	%


							
	  
 *       Note for short-term incentive planning purposes, the Threshold performance benchmark for overall salary and benefits administration should over a ten year horizon be
achieved approximately ten percent (10%) of the time. The Target is based generally on budget forecast objectives, plus a five percent (5%) stretch, and ordinarily should be achieved. The Maximum represents truly exceptional performance
(e.g., budget +15%) accomplished approximately ten percent (10%) of the time.
 **     This plan excludes the Internal Audit staff, including the director, and officers under the Bank’s Sales Incentive Plan.


 Compensation paid to employees under the Plan will be paid to employees no later than
March 15th of the year immediately following the year in which the compensation is earned, and is not intended to be deferred compensation for purposes of Section 409A of the Internal Revenue Code of 1986, as amended, and/or any
Regulations adopted there under. 
  

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